Mutual Arbitration Agreement

In addition, the high costs imposed on an employee cannot enforce an arbitration agreement, although there is no fixed dollar amount deemed too high to compel an employee to pay. It is up to the court to determine what may be inappropriate for a particular employee, which could make the agreement impossible to enforce. To avoid this potential problem, forced agreements generally do not require an employee to pay more than would normally result due to public court process. Compared to legal action, arbitration is relatively inexpensive, short and confidential. Courts generally refuse to overturn arbitral awards and can intervene to ensure that they are enforced. This means that arbitration proceedings result in final outcomes that allow the parties to move forward, while avoiding the public scrutiny that can accompany legal proceedings. In addition, arbitration allows for more creative decisions that civil courts can make. For example, if you sue your former employer for unlawful dismissal, the court can, according to Cole and Blankley, only pay you financial damages. On the other hand, an arbitrator in addition (or instead) could order the company to rehire you.

In order to consider an arbitration agreement to be valid and enforceable according to the concepts of contract law, both parties should ideally obtain something of value in exchange for other values. Not all courts impose it. “Both parties decide by mutual agreement to refer any dispute: as a rule, an arbitration agreement is presented to someone at the time of hiring (either as part of a longer employment contract or as a separate document). But sometimes a company decides to ask current employees to sign an agreement. In both cases, we often ask ourselves: do I have to sign the agreement? If signing an employment contract is a condition of employment, whether you are about to join the company or be an employee, you must sign it if you want the position. Under California law and the law of any other state, an employer may refuse (or terminate) hiring if you refuse to resolve all of your labor disputes. . .


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